Definition ∞ Consensus Transformation refers to a fundamental change in the method by which a blockchain network agrees on the validity of transactions and the order of blocks. This involves altering the underlying consensus algorithm, such as transitioning from Proof-of-Work to Proof-of-Stake. Such a shift significantly modifies the network’s security, decentralization, and energy consumption characteristics. It represents a major architectural upgrade that impacts all participants.
Context ∞ The most prominent example in crypto news is Ethereum’s transition from Proof-of-Work to Proof-of-Stake, known as “The Merge.” Discussions frequently center on the technical challenges, security implications, and economic consequences of such a transformation. News reports evaluate the success of these changes in improving scalability and reducing environmental impact. These transformations are critical events that reshape the operational foundation of major blockchain networks.